Crude oil recently hit a 21-year low as U.S. benchmark West Texas Intermediate (WTI) fell to an intraday low of $14.62. The downward spiral of oil prices has led many to believe that the value of the commodity will eventually fall to $0.
Virgin Galactic Chairman, Chamath Palihapitiya recently made a tweet stating, “See you near $0”. The tweet was made in response to another post on Twitter which showed a graph of falling oil prices.
Western Canadian Select(WCS) recently fell to $-0.15 as refineries incurred costs for storage of unwanted oil.
Earlier in April, Palihapitiya stated that Bitcoin could become “gold 2.0.” if the U.S. dollar fails. He suggested that Bitcoin could reach this position by 2030 if traditional economies falter.
“There’s a real chance by 2030 we don’t find a way to inflate our way out of this, and that the only way to break the back of deflation is essentially to create some quasi form of gold standard,”
While governments and central banks would take significant steps to oppose the use of Bitcoin as an instrument for monetary policy, many people could decide to embrace Bitcoin as a new medium for economic exchange.
“But it will be almost impossible to do that between governments and central banks. They’ll never agree on an instrument and they’ll never agree on an exchange. But then bottoms up people could decide to do it. And the minute when that happens, then it’s a done deal,”
Chamath Palihapitiya, is the CEO of Social Capital and the chairman of Virgin Galactic. He was an early senior executive at Facebook who joined the company in 2007 and left in 2011.
Research suggests that $3,000,000,000 is set to enter the the cryptocurrency markets as investors on the sideline prepare to convert their stablecoins to cryptocurrencies like Bitcoin.